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Saudi Electricity Company (SEC) increased its net profits by 36.9% to SR2.11bn ($563.5mn) in 2016 from SR 1.54bn ($411.7mn) in 2015. The rally in the company’s finances follows an increase in both the fuels costs that generators including SEC must pay as well as higher tariffs for grid-linked customers.
Announcing its annual results, SEC said the year-on-year rise in net profits was a result of “increased operating income and improved operating efficiency despite the rise in fuel prices.” The profits rebound will potentially increase interest among private investors in a planned sale of SEC.
At the end of December 2015, the Ministry of Finance announced that the cost of diesel for power generation would be hiked by 225%, heavy fuel oil (HFO) by 100%, gas by 67% and crude oil by 40% ( MEES, 8 January 2016 ). (CONTINUED - 671 WORDS)